After termination or expiration of the Embassy Suites franchise agreement, what is the franchisee required to do with goods and materials containing the Marks?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
13.6 Your Obligations on Termination or Expiration. On termination or expiration of this Agreement, you will immediately:
13.6.1 pay all sums due and owing to us or any of our Affiliates, including any expenses incurred by us in obtaining injunctive relief for the enforcement of this Agreement;
13.6.2 cease operating the Hotel as a System Hotel and cease using the System;
13.6.3 cease using the Marks, the Trade Name, and any confusingly similar names, marks, trade dress systems, insignia, symbols, or other rights, procedures, and methods.
You will deliver all goods and materials containing the Marks to us and we will have the sole and exclusive use of any items containing the Marks.
You will immediately make any specified changes to the location as we may reasonably require for this purpose, which will include removal of the signs, custom decorations, and promotional materials;
13.6.4 cease representing yourself as then or formerly a System Hotel or affiliated with the Brand or the Network;
13.6.5 return all copies of the Manual and any other Proprietary Information to us;
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must take several immediate actions. Specifically, the franchisee is required to deliver all goods and materials containing the Marks to Embassy Suites. Following the transfer of these branded items, Embassy Suites retains sole and exclusive use of them.
In addition to surrendering branded goods and materials, the franchisee must also cease operating the hotel as a System Hotel and discontinue using the System. This includes stopping the use of the Marks, the Trade Name, and any names, marks, trade dress systems, insignia, symbols, or other rights, procedures, and methods that are confusingly similar. The franchisee must also make any specified changes to the location as Embassy Suites may reasonably require, including removing signs, custom decorations, and promotional materials.
Furthermore, the franchisee is obligated to stop representing themselves as a current or former System Hotel or as being affiliated with the Embassy Suites brand or network. All copies of the Manual and any other Proprietary Information must be returned to Embassy Suites. These measures ensure a clean break between the franchisee and the Embassy Suites brand, protecting the integrity and exclusivity of the brand's image and operational systems.